An increase in non-labor income while holding the wage rate constant
A. rotates the budget line out along the consumption axis.
B. rotates the budget line out along the leisure axis.
C. rotates the budget line in along the leisure axis.
D. rotates the budget line in along the consumption axis.
E. shifts the budget line up (in the direction of the consumption axis) while maintaining
the same slope.
The slope of the wage-schooling locus provides an estimate of
A. the average years of education as a function of age.
B. the average wage or salary of workers for a given level of schooling.
C. the economic return to an additional year of schooling.
D. the economic cost of an additional year of schooling.
E. the marginal cost of an additional year of schooling.
According to the neo-classical model, what would not result from the government
levying a tax on firms for each worker the firm lays off?
A. Firms would be less likely to lay off workers.
B. Firms would be less likely to hire workers.
C. Moral hazard would encourage workers to not work as hard as before.
D. The long-run employment rate would increase.
E. Unemployed workers would remain unemployed for longer periods of time.
What is the most accurate description of the value of a worker to the firm?
A. The wage.
B. The firms total output when holding capital fixed.
C. The firms average product when holding capital fixed.
D. The dollar value of the workers output.
E. The dollar value of the average workers output.
Suppose there is currently positive selection of immigrants to the United States. What
would happen to immigration to the U.S. if the return to skills were to fall in the United
States?
A. The same selection of immigrants would continue to come to the United States.
B. The selection of immigrants to the United States would switch from being positive to
being negative.
C. The selection would remain positive but with more workers immigrating to the
United States.
D. The selection would remain positive, but the average skills of immigrants would fall.
E. The selection would remain positive, but the average skills of immigrants would
increase.
Which statement is true?
A. The rate of job loss is unrelated to education.
B. The rate of job loss is highest for the least educated.
C. The rate of job loss is highest for the most educated.
D. The rate of job growth always exceeds the rate of job loss.
E. The rate of job growth always equals the rate of job loss.
Suppose the value of marginal product is $20 per hour regardless of race. An employer
who faces an hourly wage of $14 per black worker and $17 per white worker decides to
hire all white workers. What kind of discrimination is this?
A. Employee discrimination.
B. Consumer discrimination.
C. Employer discrimination.
D. Statistical discrimination.
E. None of the above.
If unskilled labor and capital are substitutes,
A. demand for unskilled labor increases when the price of capital decreases.
B. the cross-elasticity between unskilled labor and capital is positive.
C. the price of unskilled labor decreases when the price of capital increases.
D. the price of capital is increasing.
E. the demand curve for capital is upward-sloping.
Labor demand is more elastic the greater the elasticity of demand for the firms output
because
A. the firm would see its quantity demanded fall substantially if the firm tried to pass
increased labor costs through to the consumer by increasing the price of the output
good.
B. the firms output price falls when the firm produces less output.
C. a firm that operates in a competitive output market cannot lower its price.
D. capital is usually price elastic.
E. the firm will want to hire fewer workers when the wage rate increases.
Of the 500,000 people (age 16+) in a particular country, 300,000 people are in the labor
force. Of these, 240,000 are employed and 60,000 are unemployed. What is the labor
force participation rate?
A. 25%
B. 48%
C. 55%
D. 60%
E. 80%
If one looks at U.S. Census data and finds that the average male salary is $43,000 while
the average female salary is $38,000, which of the following is not likely to be a
significant cause of this difference given U.S. labor market demographics?
A. Women are more inclined than men to work part-time.
B. Women have less education than men.
C. Women and men prefer different kinds of jobs.
D. Labor market discrimination.
E. On-the-job experience.
One disadvantage of using a tournament is that
A. no one will apply for tournament-style jobs.
B. tournaments are more expensive than time rates or piece rates.
C. workers who view themselves as losing the tournament will quit providing effort.
D. the winners of tournaments are typically over-paid.
E. tournaments are not able to identify the most productive workers.
How are unemployment rates in the United States related to education?
A. Unemployment rates are unrelated to education.
B. Higher levels of education are associated with higher rates of unemployment.
C. Higher levels of education are associated with lower rates of unemployment.
D. Unemployment rates are highest for high school dropouts but are unrelated to
education for anyone who has a high school degree.
E. Unemployment rates for high school dropouts and high school graduates are roughly
equal and are less than the overall unemployment rate of college graduates.